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David Stafford
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Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • An Example Of The Complexities Of Investing In Emerging Markets. 0 comments
    Jul 4, 2013 8:08 PM | about stocks: GUR

    In the discussion of the eastern European etf the other day(NYSEARCA:GUR) there was a discussion of Lukoil, and how that's essentially not so much a "local"/ indigenous company for that specific region being targeted. Here however, is an example of how that can be complicated. For example, though Lukoil, clearly isn't a Romanian company, it is building wind power plants in Romania, as it the norm I guess for this sort of thing, US power plants in Japan, etc, but perhaps this highlight why their are sort of venn diagrams within venn diagrams, that really hinge on perhaps specific projects that make a company a legitimate investment for a very acute investment desire per se. For this one project per se, would give this ETF, via one of its major holdings more acute beta per se to what the desired investment opportunity was, than would be the case without one windfarm per se. So hence, to truly evaluate these sort of investments we have to look at project portfolios within the companies, whose equity comprises the holdings of these larger regional ETF's. Needless to say, it seems as though someone could maintain more than steady employment, just by being assigned to measure the developments concerning perhaps only a quarter or half of an ETF like this, and hence, these sorts of investment opportunities, surely are very interesting from a research perspective perhaps.


    Article concerning Lukoil's windfarm in Romania;



    As a side note, perhaps to measure the economy, of an emerging economy, it may simply be simpler, to measure the in/out/capital raising of a very large important/influential per se, bank, for example, in reading of Romania at least I've seen many articles like this one;(http://www.romania-insider.com/unicredit-tiriac-bank-gives-eur-25-mln-in-jeremie-backed-loans-receives-ok-for-extra-eur-87-million-funding/102040/) discussing "UniCredit Tiriac Bank", in particular, so perhaps though sort of "rough" per se, perhaps if one was a little short of time, simply looking for news concerning this one bank in particular or its doppelgänger per se in the context of another emerging market, might help guide one's intuition concerning the local investment/business climate.


    It may also be worth mentioning that entry level but stylish labels like H&M, have been seeing growth in Romania, the head of the IMF, that former tennis champ herself, is also visiting for the first time as of late, and Gazprom is opening its first gas station there. Perhaps this is the sign of the slow trickle that leads up to increased consumer spending, and hence increased money velocity all over the place in several decades time. Of course this would perhaps be the infancy of said "flow", hence it might be an ideal time to invest, or too early to tell per se, perhaps kind of an ambiguous period per se. Regardless perhaps though, when we start seeing consumer level firsts this may be a sign of good things to come, for if one could have started investing in China, when Tv's started first becoming popular on the black market, one would surely no longer be "toiling" unless one wanted to per se. Either way, with the global economy in a rough spot, it may be wise to as always take all factors concerning a countries economy(such as per capita GDP) into consideration.

    Stocks: GUR
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